15 year Public Provident Fund Account PPF
Interest payable,
Rates,
Periodicity etc.
From
1.4.2016, interest rates are as follows:-
o 8.10% per annum (compounded yearly).
o
Minimum Amount
for opening of account
and maximum balance that can be retained
Minimum Rs. 500, Maximum Rs.
1,50,000 in a financial year.
Deposits can be made in lump-sum or in 12 installments.
Deposits can be made in lump-sum or in 12 installments.
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Salient features
including Tax Rebate
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o An individual can open account with Rs. 100 but
has
to deposit minimum of Rs. 500 in a financial year and
maximum Rs.
1,50,000
o Joint account can not be opened.
o Account can be opened by cash/cheque and
In
case of cheque, the date of realization of cheque in Govt.
account shall be
date of opening of account.
o Nomination facility is available at the time
of opening and also after opening of account.
Account can be transferred from
one post office to another.
o The subscriber can open another account in
the
name of minors but subject to maximum investment
limit by adding balance
in all accounts.
o Maturity period is 15 years but the same
can
be extended within one year of maturity for
further 5 years and so on.
o Maturity value can be retained without
extension
and without further deposits also.
o Premature closure is not allowed before 15
years.
o Deposits qualify for deduction from income
under Sec. 80C of IT Act.
o Interest is completely tax-free.
o Withdrawal is permissible every year from
7th financial year from the year of opening account.
o Loan facility available from 3rd financial
year.
No attachment under
court decree order.
The PPF account can
be opened in a
Post Office which is Double handed and above.
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